China's Digital Economy, Green Goals, and Carbon Markets: A Dynamic Trio

In recent years, China has been making big moves to blend its digital economy with environmental protection and carbon neutrality goals. To understand how these areas influence each other, researchers looked at daily data from early 2019 to mid-2025. They used a special method to break down the data into long-term, short-term, and sudden changes. This helped them see how these three areas are connected and how they affect each other's performance. The study found that these areas are closely linked, especially in the long run. Carbon neutrality seems to be the driving force, with environmental protection benefiting from it, and the digital economy acting as a bridge. Interestingly, the connections between these areas change over time. For example, when new technologies like ChatGPT and AI tools came out, the short-term and sudden effects became much stronger. When it comes to investing, the digital economy seems to be a good choice for managing short-term risks. It offers lower costs and better efficiency. On the other hand, carbon neutrality is better for long-term strategies. The study also suggests that during good times, it's best to focus on long-term plans. But when things are not going well, it's better to focus on managing sudden risks. All these findings can help investors make better decisions and manage risks in these areas. It's clear that the digital economy, environmental protection, and carbon neutrality are all important for China's future.